There are a lot of reasons to feel optimistic about the future, but if you are expecting 3% interest rates again, you’re gonna be disappointed. What we have now in upper 6’s lower 7’s is still incredible rates. Full disclosure, my rate is 3% and I’m not going to go UP to 7%. BUT, if you haven’t had a 3% or lower rate, well, this is reality now. BTW my first mortgage rate was over 14% with a perfect credit score. Shew. Glad those days are over. For most people, though, it’s not about the rate; it’s about the resulting payment amount and that is tied to price.

When you hear a market report, and I’ve said this before, remember that real estate is local. Local local local. Example, if you life in Raleigh NC, you will be the last market to fall and the first to rise. Why? We are a fire ant colony, so there’s a lot of demand and that’s the lowest, simplest reason. Lots of people needing housing. But we are also full of universities, colleges, teaching hospitals, regular hospitals and healthcare sites, manufacturing, service providers and dare I say it? Wealth (not me). So we bring in, last metric I heard, 70 people every day. That creates demand and that’s good for a market.

Our market crashed in 2008 for a few months before it started climbing out. I describe it as bumping along the bottom and then suddenly, an uptick. I bought my house during the early stages of the climb, by the way. Other nearby markets stayed down lower and longer, by the way, because in some cases there was no market for their homes. No demand.

Let’s talk home prices. In my area the MEDIAN price has gone up about 2% to the 400’s. And folks, please know there’s a difference between MEAN and MEDIAN. Mean is an average of all prices. Median is just the middle of the scale, period. An increase in median means the prices have gone up overall and more homes in the higher prices are selling more often. Higher priced homes selling more can mean (and does in my market) that there aren’t any lower priced homes fit for most lower end buyers. The whole market has risen, in terms of price. Now I don’t like that because many buyers have been pushed right out of the market, had their dream of home ownership stolen from them. And I’m talking about hard working educated people. Very frustrating for me, because I love my first time buyers.

First time buyers used to find a home under 200K. Now, first time buyers have a 4 in the first number, very often, and few can afford that. The lower priced homes are often old, suffering from delayed or non-existent maintenance, or are a flipped home with lipstick on a pig, to steal that overused description. Sometimes what is hidden is a huge repair bill sleeping. So…better have a smart real estate agent who knows what to look for. Like me. Because these first time buyers area not aware of the market, they want an acre, 2000 square feet, fenced back yard, pool, clubhouse, modern look…no. They’re looking at a 5 or 6 in the first number there.

The outlying areas are the only places left to find ‘a bargain’. And ‘bargain’ might end up being a monster waiting to strike your bank account.

So in my market, and I know my market, it’s tough. You have to be prepared for reality. Yes, have a good credit score, but also have some savings. Remember, even if you find a seller who will go under contract with a 100% financing buyer, you will still have inspections and attorney fees to pay and that is in the thousands.

I’ve said this 100 times. TALK TO A REAL ESTATE AGENT. It is free to talk and gather information. A good agent can prepare you and even give you some ideas of good lenders to TALK TO, so you have that data point as well.

Notice I said TALK. You are NOT going to text your way through a real estate transaction. And besides, studies are showing how spending your time with your head bent down to a phone or computer is keeping you from getting good jobs. Why? Because you have zero people skills. So communicate by talking. Learn those ropes. And if I can help you, I’d be honored. I’m Brenda at Premier Advantage Realty. Call and ask for ME. I do not charge any ‘consultation’ fees.

I was on the phone with a car insurance person the other day, and she said, “You have such a pleasant voice.” Isn’t it interesting?

Hey, have a wonderful day out there! Thanks for reading!